Introduction

The strength of franchise systems typically does not lie in the absolute quality of the products offered. Instead, it resides largely in the capacity of the franchised chain to offer a uniform product at a reasonable price. Customers know what to expect when they patronize an outlet in a franchised chain, and it is important for the chains to successfully meet these expectations time after time. The importance of uniformity to mobile customers is clear. Speaking about airport restaurants, Nancy Kruse, of the restaurant consulting firm Technomic, notes: “Travelers love to see fast-food chains at airports. Even if they're 2000 miles from home, they can go into an airport McDonald's, order a Big Mac, and know exactly what they're getting and more or less what it's going to cost” (quoted in Frequent Flyer, March 1991). Similarly, the founder of Ember's America, a new franchise conversion concept for locally owned family restaurants, points out: “If Big Macs were different from McDonald's to McDonald's, people wouldn't stop at McDonald's very often.” In other words, it is the consistency of the system's operation, service, and product quality that attracts customers and induces loyalty: customers become loyal if the experiences they enjoy at diverse units of these chains routinely meet their expectations.

Franchisors are, of course, well-aware of the importance of consistency to their customers. Bradach (1998) interviewed several managers and franchisees in five major fast-food franchised chains to gain insight into how these firms were organized and why.